Medco Completes Acquisition of United BioSource Corporation

Medco Health Solutions

on Thursday completed its acquisition of

United BioSource Corporation

in an all-cash transaction valued at approximately $730 million, creating a complementary and comprehensive research organization that extends Medco's core capabilities in data analytics and research to accelerate pharmaceutical knowledge.

UBC is now a wholly-owned subsidiary of Medco that will run independently from Medco's core business to ensure compliance with contractual requirements and client expectations.  Dr. Robert S. Epstein, Medco's chief medical officer and president of the Medco Research Institute™, will have overall responsibility for the UBC business.  UBC Chief Executive Officer Ethan Leder will continue in his position, overseeing the company's current operations.

The transaction was funded with the proceeds of Medco's recently completed senior notes offering.  The new business is expected to be slightly accretive to Medco shareholders in 2011, excluding one-time items and amortization.